SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
For the fiscal year ended December 31, 1998
_X_ Annual Report Pursuant to Section 15(d)
of the Securities Exchange Act of 1934
___ Transition Report Pursuant to Section 15(d)
of the Securities Exchange Act of 1394
For the transition period from to
Commission file number 1-8291
GREEN MOUNTAIN POWER CORPORATION
Employee Savings and Investment Plan and Trust
(Full title of the Plan)
Green Mountain Power Corporation
163 Acorn Lane
Colchester, VT 05446
(802) 864-5731
(Name of issuer of the securities held pursuant to the
Plan and the address of its principal executive office)
GREEN MOUNTAIN POWER CORPORATION
EMPLOYEE SAVINGS AND
INVESTMENT PLAN AND TRUST
Financial Statements
December 31, 1998 and 1997
(With Independent Auditors' Report Thereon)
GREEN MOUNTAIN POWER CORPORATION
Employee Savings and Investment Plan and Trust
December 31, 1998 and 1997
Table of Contents
Page
Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4
Supplementary Schedules:
Schedule
1 Line 27a - Schedule of Assets Held for Investment Purposes 18
2 Line 27d - Schedule of Reportable Transactions 19
Independent Auditors' Report
The Retirement Board
Green Mountain Power Corporation
Employee Savings and Investment Plan and Trust:
We have audited the accompanying statements of net assets available for
plan benefits of Green Mountain Power Corporation Employee Savings and
Investment Plan and Trust as of December 31, 1998 and 1997, and the
related statements of changes in net assets available for plan benefits
for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
The 1996 financial statements were audited by other auditors whose
report dated February 11, 1997 expressed an unqualified opinion on those
financial statements.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for plan
benefits of the Plan as of December 31, 1998 and 1997, and the changes
in net assets available for plan benefits for the years then ended, in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary schedules of
assets held for investment purposes and reportable transactions are
presented for purposes of additional analysis and are not a required
part of the basic financial statements but are supplementary information
required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security
Act of 1974. Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
May 28, 1999
Burlington, Vermont
Vt. Reg. No. 92-0000241
<TABLE>
<CAPTION>
Green Mountain Power Corporation
Employee Savings and Investment Plan and Trust
Statements of Net Assets Available for Plan Benefits
December 31, 1998 and 1997
1998 1997
------------- -------------
<C> <S> <S>
Assets:
Investments at fair value:
Green Mountain Power Corporation common stock,
cost $1,456,173 and $1,526,492, respectively $785,039 $1,204,391
Registered investment companies, cost $18,454,779
and $16,697,061, respectively 20,495,133 17,845,951
------------- -------------
21,280,172 19,050,342
------------- -------------
Investments at cost, which approximates fair value:
Participant loans 975,259 999,950
------------- -------------
Total investments 22,255,431 20,050,292
Receivables:
Due from participating employers 103,659 95,464
Cash - 23,107
------------- -------------
Total assets 22,359,090 20,168,863
------------- -------------
Liabilities:
Due to brokers - (2,738)
------------- -------------
Net assets available for Plan benefits 22,359,090 20,166,125
============= =============
See accompanying notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Green Mountain Power Corporation
Employee Savings and Investment Plan and Trust
Statements of Changes in Net Assets Available for Plan Benefits
For the Years Ended December 31, 1998, 1997 and 1996
1998 1997 1996
------------- ------------- -------------
<C> <S> <S> <S>
Investment income:
Interest $128,692 $456,542 $190,691
Dividends 943,372 1,158,647 924,282
Net appreciation in fair
value of investments 659,579 1,065,645 266,442
------------- ------------- -------------
1,731,643 2,680,834 1,381,415
------------- ------------- -------------
Contributions:
Employer 418,705 440,313 447,490
Participant 1,401,710 1,576,204 1,526,730
------------- ------------- -------------
1,820,415 2,016,517 1,974,220
------------- ------------- -------------
Total additions 3,552,058 4,697,351 3,355,635
------------- ------------- -------------
Administrative expenses 36,996 60,700 51,468
Participant withdrawals and distributions 1,322,097 2,081,422 1,092,977
------------- ------------- -------------
Total deductions 1,359,093 2,142,122 1,144,445
------------- ------------- -------------
Net increase 2,192,965 2,555,229 2,211,190
Net assets available for Plan benefits:
Beginning of Year 20,166,125 17,610,896 15,399,706
------------- ------------- -------------
End of Year $22,359,090 $20,166,125 $17,610,896
============= ============= =============
See accompanying notes to financial statements.
</TABLE>
(1) Plan Description
The following description of the Green Mountain Power Corporation Employee
Savings and Investment Plan and Trust (the Plan) is provided for general
information only. Participants should refer to the Plan document
for a more complete description of the Plan's provisions.
(a) General
The Plan is a defined contribution plan established by Green Mountain
Power Corporation. The Plan covers substantially all full-time employees
of Green Mountain Power Corporation (the Company) and its subsidiaries,
Green Mountain Propane Gas Company, Inc. and Mountain Energy, Inc.
The Company's Retirement Board is the Plan Administrator with the
authority to control and manage the operation and administration of the
Plan. The Plan's assets are held by the Trustee of the Plan, which
invests cash received, including interest and dividend income, and makes
distributions to participants. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA).
(b) Contributions
Each year, participants may contribute up to 15% of pretax annual
compensation, as defined by the Plan. The Company contributes $.50 for
every $1.00 contributed by the participant on the first 6% of the
participant's eligible compensation.
(c) Participant Accounts
Each participant's account is credited with the participant's
contributions, allocations of the Company's contributions, and plan
earnings, and debited with participant's withdrawals, distributions and an
allocation of administrative expenses. Allocations are based on participant
earnings or account balances, as defined. The benefit
to which a participant is entitled is the benefit that can be provided
from the participant's vested account.
(d) Vesting
Participants are immediately vested in their voluntary contributions as
well as the employers' contribution and any earnings thereon.
(e) Investment Options
Upon enrollment or re-enrollment, prior to May 1, 1997, participants
directed their contributions to any of the following investment options
in 10 percent increments:
GMP Stock Fund - This fund is invested in Green Mountain Power
Corporation Common Stock, a participating employer.
S & P 500 Index Fund - This fund is invested in units of the Standard &
Poor's 500 Index Fund which is comprised principally of corporate stock,
held in the Standard & Poor's 500 Index. The fund is designed to duplicate
the performance of the Standard & Poor's 500 Index.
Temporary Cash Fund - This fund is invested in the Lehman Cash Fund.
Asset Fund - This fund is invested in shares of the Fidelity Asset
Manager Fund which is comprised of a broad mix of securities including
equity, fixed income, and money market securities.
Ultra Fund - This fund is invested in shares of the Twentieth Century
Ultra Investors Fund, which is comprised of securities of small and
emerging growth companies. It invests in the stock of a wide range of
small to medium-sized growth companies.
Upon enrollment or re-enrollment, effective May 1, 1997, participants
may direct their contributions to any of the following investment options
in 1 percent increments:
Intermediate Term Treasury Fund - This fund is invested in U.S. Treasury
bills, notes and bonds.
Vista Fund - An aggressive equity fund invested in common stocks
considered to have better-than-average appreciation potential.
Value Fund - A conservative equity fund seeking long-term capital
growth. Income is a secondary objective.
International Discovery Fund - Emerging growth fund seeking long-term
growth primarily through a diversified international portfolio of equity
investments.
Strategic Allocation Funds: Conservative/Moderate/Aggressive - Asset
allocation funds that invest in stocks, bonds and money market securities.
This diversification of these investments depends on the objective; whether
it is conservative, moderate or aggressive.
Premium Capital Reserve Fund - This fund is invested in high quality
U.S. dollar denominated money market instruments and other short-term
obligations of banks, governments and corporations.
Barclay's Equity Index Fund - This fund invests in the largest companies
in the U.S. economy with an objective of long-term high returns.
Charles Schwab Fund - With a minimum amount of $1,000 an individual can
purchase investments that are offered through Schwab. These investments
include mutual funds, over-the-counter stocks, certificates of deposits,
money markets, and federally backed investments and bonds. A participant
may not reallocate more than 50% of their total balance to this
investment group.
GMP Stock Fund - This fund is invested in Green Mountain Power Corporation
common stock, a participating employer.
Participants may change their investment options daily.
The following number of employees were participating in each investment
fund at December 31, 1998 and 1997:
1998 1997
---- ----
GMP Stock Fund 310 307
Intermediate Term Treasury Fund 68 56
Vista Fund 176 229
Value Fund 186 198
International Discovery Fund 166 171
Strategic Allocation Conservative Fund 62 60
Strategic Allocation Moderate Fund 176 202
Strategic Allocation Aggressive Fund 165 176
Premium Capital Reserve Fund 96 101
Barclay's Equity Index Fund 228 224
Charles Schwab Fund 4 17
(f) Participant Loans
Participants may borrow from their fund accounts a minimum of $1,000 up
to a maximum equal to the lesser of $50,000 or 50 percent of their account
balance. Loan transactions are treated as a transfer to
(from) the investment fund from(to) the participant loan fund. Loan
terms range from 1-5 years or up to 30 years for the purchase of a principal
residence. The loans are secured by the balance in the
participant's account and bear interest at the Trustee's prime rate.
Principal and interest is paid ratably through monthly payroll deductions.
(g) Payment of Benefits
On termination of service due to death, disability or retirement, a
participant may elect to receive either a lump-sum amount or to purchase
an annuity equal to the value of the participant's vested interest in his or
her account. For termination of service due to other reasons, a
participant may receive the value of the vested interest in his or her
account as a lump-sum distribution.
(2) Summary of Accounting Policies
(a) Basis of Accounting
The financial statements of the Plan are prepared under the accrual
method of accounting.
(b) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan Administrator to make
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements. Actual
results could differ from those estimates.
(c) Investment Valuation and Income Recognition
The Plan's investments are stated at fair value. Shares of registered
investment companies are valued at quoted market prices which represent
the net asset value of shares held by the Plan at year-end. The
Company stock is valued at its quoted market price. Participant loans
and the Temporary Cash Fund are valued at cost which approximates fair value.
(d) Payment of Benefits
Benefits are recorded when paid.
(3) Related Party Transactions
The Plan's investments are managed by American Century. American
Century is the trustee as defined by the Plan and, therefore, these
transactions qualify as party-in-interest.
(4) Plan Termination
Although it has not expressed any intention to do so, the Company has
the right under the Plan to discontinue contributions or terminate the
Plan at any time, subject to the provisions of ERISA.
(5) Investments
Investments that represent 5% or more of the Plan's net assets available
for benefits at December 31, 1998 and 1997 are as follows:
1998 1997
---- ----
GMP Stock Fund $ N/A 1,204,391
Vista Fund 1,786,892 2,442,606
Value Fund 2,718,777 2,617,348
International Discovery Fund 2,172,609 1,698,124
Strategic Allocation Moderate Fund 2,658,135 2,462,641
Strategic Allocation Aggressive Fund 2,379,058 2,056,852
Premium Capital Reserve Fund 1,468,899 1,178,709
Barclay's Equity Index Fund 5,339,934 3,997,192
(6) Tax Status
The Internal Revenue Service has determined and informed the Company by
a letter dated October 15, 1986, that the Plan is qualified under the
applicable provisions of the Internal Revenue Code (IRC) and therefore
exempt from Federal income taxes. The Plan has been amended since
receiving the determination letter. In the opinion of the Plan
administrator and the Plan's tax counsel, the Plan has operated within
the terms of the Plan and should remain qualified under the applicable
provisions of the IRC.
(7) Realized Gain (Loss) on Sale of Investments
Aggregate cost, proceeds and realized net gain (loss) on investment
transactions were as follows for the years ended December 31, 1998, 1997
and 1996:
Green Mountain
Power Registered
Corporation Investments
1998 Common Stock Companies Total
------------- ----------- -----
Aggregate proceeds $ 465,952 $2,717,818 $3,183,770
Aggregate cost (based on average cost) (641,486) (2,425,136) (3,066,622)
----------- ----------- -----------
Net gain (loss) $ (175,534) $ 292,682 $ 117,148
=========== =========== ===========
1997
Aggregate proceeds $ 2,389,782 $ 25,733,234 $ 28,123,016
Aggregate cost (based on
average cost) (2,514,119) (23,570,851) (26,084,970)
----------- ------------ ------------
Net gain (loss) $ (124,337) $ 2,162,383 $ 2,038,046
=========== ============ ============
1996
Aggregate proceeds $ 1,464,011 $1,515,148 $2,979,159
Aggregate cost (based on
average cost) (1,594,244) (1,480,635) (3,074,879)
----------- ----------- -----------
Net gain (loss) $ (130,233) $ 34,513 $ (95,720)
=========== =========== ===========
(8) Net Unrealized Appreciation in Fair Value of Investments
The following summarizes the changes in net unrealized appreciation in
fair value of investments for the years ended December 31, 1998, 1997
and 1996:
Beginning Increase End
of Year (Decrease) of Year
1998 $ 826,789 $ 542,431 $ 1,369,220
1997 1,799,190 (972,401) 826,789
1996 1,437,028 362,162 1,799,190
(9) Allocation of Funds by Investment Fund
The allocation of assets, liabilities and net assets available for plan
benefits by investment fund is as follows:
<TABLE>
<CAPTION>
Intermediate Strategic
Term International Allocation
Treasury Vista Value Discovery Conservative
12/31/98 Fund Fund Fund Fund Fund
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value as determined
by quoted market price:
Green Mountain Power Corporation
common stock $0 $0 $0 $0 $0
Registered investment companies 973,917 1,786,892 2,718,777 2,172,609 773,281
Investments at cost, which approximates
fair value:
Participant loans 0 0 0 0 0
Receivables:
Due from participating employers 0 0 0 0 0
------------- ------------- ------------- ------------- -------------
Net assets available for Plan Benefits $973,917 $1,786,892 $2,718,777 $2,172,609 $773,281
============= ============= ============= ============= =============
Percent of Total Assets 4% 8% 12% 10% 3%
============= ============= ============= ============= =============
Strategic Strategic Premium Barclay's
Allocation Allocation Capital Equity Charles
Moderate Aggressive Reserve Index Schwaab
December 31, 1998 continued Fund Fund Fund Fund Fund
------------- ------------- ------------- ------------- -------------
ASSETS
Investments at fair value as determined
by quoted market price:
Green Mountain Power Corporation
common stock $0 $0 $0 $0 $0
Registered investment companies 2,658,135 2,379,058 1,468,899 5,339,934 223,631
Investments at cost, which approximates
fair value:
Participant loans 0 0 0 0 0
Receivables:
Due from participating employers 0 0 0 0 0
------------- ------------- ------------- ------------- -------------
Net assets available for Plan Benefits $2,658,135 $2,379,058 $1,468,899 $5,339,934 $223,631
============= ============= ============= ============= =============
Percent of Total Assets 12% 11% 7% 24% 1%
============= ============= ============= ============= =============
GMP
Stock Loan
December 31, 1998 continued Fund Fund Total
------------- ------------- -------------
ASSETS
Investments at fair value as determined
by quoted market price:
Green Mountain Power Corporation
common stock $785,039 $0 $785,039
Registered investment companies 0 0 20,495,133
Investments at cost, which approximates
fair value:
Participant loans 0 975,259 975,259
Receivables:
Due from participating employers 103,659 0 103,659
------------- ------------- -------------
Net assets available for Plan Benefits $888,698 $975,259 $22,359,090
============= ============= =============
Percent of Total Assets 4% 4% 100%
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Intermediate
Term International
Treasury Vista Value Discovery
December 31, 1997 Fund Fund Fund Fund
------------ ------------ ------------ ------------
<C> <S> <S> <S> <S> <S>
ASSETS
Investments at fair value as determined
by quoted market price:
Green Mountain Power Corporation
common stock $0 $0 $0 $0
Registered investment companies 667,433 2,442,606 2,617,348 1,698,124
Investments at cost, which approximates
fair value:
Participant loans
Receivables:
Due from participating employers 230 7 0 5
Cash 0 0 0 0
------------ ------------ ------------ ------------
Total Assets 667,663 2,442,613 2,617,348 1,698,129
Liabilities:
Due from (to) brokers 0 0 (5) 0
------------ ------------ ------------ ------------
Net assets available for Plan Benefits $667,663 $2,442,613 $2,617,343 $1,698,129
============ ============ ============ ============
Percent of Total Assets 3% 12% 13% 8%
============ ============ ============ ============
Strategic Strategic Strategic Premium
Allocation Allocation Allocation Capital
Conservative Moderate Aggressive Reserve
December 31, 1997 continued Fund Fund Fund Fund
------------ ------------ ------------ ------------
ASSETS
Investments at fair value as determined
by quoted market price:
Green Mountain Power Corporation
common stock $0 $0 $0 $0
Registered investment companies 588,974 2,462,641 2,056,852 1,178,709
Investments at cost, which approximates
fair value:
Participant loans 0 0 0 0
Receivables:
Due from participating employers 0 0 1 0
Cash 0 0 0 0
------------ ------------ ------------ ------------
Total Assets 588,974 2,462,641 2,056,853 1,178,709
Liabilities:
Due from (to) brokers 0 (2) 0 (5)
------------ ------------ ------------ ------------
Net assets available for Plan Benefits $588,974 $2,462,639 $2,056,853 $1,178,704
============ ============ ============ ============
Percent of Total Assets 3% 12% 10% 6%
============ ============ ============ ============
Barclay's
Equity Charles GMP
Index Schwab Stock Loan
December 31, 1997 continued Fund Fund Fund Fund Total
------------ ------------ ------------ ------------ -------------
ASSETS
Investments at fair value as determined
by quoted market price:
Green Mountain Power Corporation
common stock $0 $0 $1,204,391 $0 $1,204,391
Registered investment companies 3,997,192 136,072 0 0 17,845,951
Investments at cost, which approximates
fair value:
Participant loans 0 0 0 999,950 999,950
Receivables:
Due from participating employers 2 77 95,142 0 95,464
Cash 0 0 23,107 0 23,107
------------ ------------ ------------ ------------ -------------
Total Assets 3,997,194 136,149 1,322,640 999,950 20,168,863
Liabilities:
Due from (to) brokers 0 0 (2,726) 0 (2,738)
------------ ------------ ------------ ------------ -------------
Net assets available for Plan Benefits $3,997,194 $136,149 $1,319,914 $999,950 $20,166,125
============ ============ ============ ============ =============
Percent of Total Assets 20% 1% 7% 5% 100%
============ ============ ============ ============ =============
</TABLE>
(10) Changes in net assets available for plan benefits by investment fund
The allocation of the various components of changes in net assets available
for Plan benefits by investment fund for the years ended
December 31, 1998, 1997 and 1996 is as follows:
<TABLE>
<CAPTION>
Intermediate Inter- Strategic Strategic Strategic
Term national Allocation Allocation Allocation
Treasury Vista Value Discovery Conservative Moderate Aggressive
1998 Fund Fund Fund Fund Fund Fund Fund
----------- ------------ ------------ ------------ ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):
Interest $1,166 $8,729 $10,638 $8,472 $4,208 $7,450 $13,690
Dividends 61,527 13 467,559 7,656 45,908 138,887 84,121
Net appreciation
(depreciation) in fair
value of investments 8,987 (308,262) (349,689) 298,822 21,796 162,774 202,531
----------- ------------ ------------ ------------ ----------- ------------- ------------
Total investment
income (loss) 71,680 (299,520) 128,508 314,950 71,912 309,111 300,342
----------- ------------ ------------ ------------ ----------- ------------- ------------
Contributions:
Employer 0 0 0 0 0 0 0
Participant 45,815 164,241 224,448 169,354 53,365 163,411 189,618
----------- ------------ ------------ ------------ ----------- ------------- ------------
Total contributions 45,815 164,241 224,448 169,354 53,365 163,411 189,618
----------- ------------ ------------ ------------ ----------- ------------- ------------
Total additions 117,495 (135,279) 352,956 484,304 125,277 472,522 489,960
----------- ------------ ------------ ------------ ----------- ------------- ------------
Administrative expenses (1,351) (3,945) (4,799) (3,676) (1,454) (4,893) (4,554)
Participant withdrawals and distributions (30,773) (114,072) (90,155) (62,961) (12,693) (136,894) (88,730)
----------- ------------ ------------ ------------ ----------- ------------- ------------
Total deductions (32,124) (118,017) (94,954) (66,637) (14,147) (141,787) (93,284)
----------- ------------ ------------ ------------ ----------- ------------- ------------
Interfund transfers 220,883 (402,425) (156,568) 56,813 73,177 (135,239) (74,471)
----------- ------------ ------------ ------------ ----------- ------------- ------------
Net increase (decrease) 306,254 (655,721) 101,434 474,480 184,307 195,496 322,205
Net assets available
for Plan benefits:
Beginning of year 667,663 2,442,613 2,617,343 1,698,129 588,974 2,462,639 2,056,853
----------- ------------ ------------ ------------ ----------- ------------- ------------
End of year $973,917 $1,786,892 $2,718,777 $2,172,609 $773,281 $2,658,135 $2,379,058
=========== ============ ============ ============ =========== ============= ============
Premium
Capital Barclay's Charles GMP
Reserve Equity Index Schwab Stock Loan
1998 continued Fund Fund Fund Fund Fund Total
----------- ------------ ------------ ------------ ----------- -------------
Investment income (loss):
Interest $8,049 $14,246 $46,826 $5,218 $0 $128,692
Dividends 69,975 5 0 67,721 0 $943,372
Net appreciation
(depreciation) in fair
value of investments 0 1,147,187 0 (524,567) 0 $659,579
----------- ------------ ------------ ------------ ----------- -------------
Total investment
income (loss) 78,024 1,161,438 46,826 (451,628) 0 1,731,643
----------- ------------ ------------ ------------ ----------- -------------
Contributions:
Employer 0 0 0 418,705 0 $418,705
Participant 72,328 282,847 0 36,283 0 $1,401,710
----------- ------------ ------------ ------------ ----------- -------------
Total contributions 72,328 282,847 0 454,988 0 1,820,415
----------- ------------ ------------ ------------ ----------- -------------
Total additions 150,352 1,444,285 46,826 3,360 0 3,552,058
----------- ------------ ------------ ------------ ----------- -------------
Administrative expenses (3,023) (8,228) 0 (1,073) 0 ($36,996)
Participant withdrawals and distributions (153,208) (485,916) 0 (82,903) (63,792) ($1,322,097)
----------- ------------ ------------ ------------ ----------- -------------
Total deductions (156,231) (494,144) 0 (83,976) (63,792) (1,359,093)
----------- ------------ ------------ ------------ ----------- -------------
Interfund transfers 296,074 392,599 40,656 (350,600) 39,101 $0
----------- ------------ ------------ ------------ ----------- -------------
Net increase (decrease) 290,195 1,342,740 87,482 (431,216) (24,691) 2,192,965
Net assets available
for Plan benefits:
Beginning of year 1,178,704 3,997,194 136,149 1,319,914 999,950 $20,166,125
----------- ------------ ------------ ------------ ----------- -------------
End of year $1,468,899 $5,339,934 $223,631 $888,698 $975,259 $22,359,090
=========== ============ ============ ============ =========== =============
</TABLE>
<TABLE>
<CAPTION>
S&P Intermediate
500 Temporary Term
Index Cash Asset Ultra Treasury Vista Value
1997 Fund Fund Fund Fund Fund Fund Fund
------------ ----------- ------------ ----------- ----------- ----------- ------------
<C> <S> <S> <S> <S> <S> <S> <S>
Investment income (loss)
Interest $3,783 $35,571 $2,988 $3,368 $11,026 $79,743 $77,629
Dividends 0 0 25,598 0 27,241 149,223 408,539
Net appreciation
(depreciation) in fair
value of investments 341,852 0 (71,403) 92,746 21,328 96,849 36,049
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total investment
income (loss) 345,635 35,571 (42,817) 96,114 59,595 325,815 522,217
------------ ----------- ------------ ----------- ----------- ----------- ------------
Contributions:
Employer 0 0 0 0 0 0 0
Participant 130,093 37,476 96,618 183,345 27,527 166,337 163,044
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total contributions 130,093 37,476 96,618 183,345 27,527 166,337 163,044
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total additions 475,728 73,047 53,801 279,459 87,122 492,152 685,261
------------ ----------- ------------ ----------- ----------- ----------- ------------
Administrative expenses (11,681) (5,700) (9,234) (12,088) (274) (1,883) (1,529)
Participant withdrawals and distributions (83,935) (81,720) (80,592) (68,936) (2,081) (292,558) (249,064)
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total deductions (95,616) (87,420) (89,826) (81,024) (2,355) (294,441) (250,593)
------------ ----------- ------------ ----------- ----------- ----------- ------------
Interfund transfers (4,132,884) (1,897,158) (3,078,573) (4,159,980) 582,896 2,244,902 2,182,675
------------ ----------- ------------ ----------- ----------- ----------- ------------
Net increase (decrease) (3,752,772) (1,911,531) (3,114,598) (3,961,545) 667,663 2,442,613 2,617,343
Net assets available
for Plan benefits:
Beginning of year 3,752,772 1,911,531 3,114,598 3,961,545 0 0 0
------------ ----------- ------------ ----------- ----------- ----------- ------------
End of year $0 $0 $0 $0 $667,663 $2,442,613 $2,617,343
============ =========== ============ =========== =========== =========== ============
Inter- Strategic Strategic Strategic Premium Barclay's
national Allocation Allocation Allocation Capital Equity Charles
Discovery Conservative Moderate Aggressive Reserve Index Schwab
1997 continued Fund Fund Fund Fund Fund Fund Fund
------------ ----------- ------------ ----------- ----------- ----------- ------------
Investment income (loss)
Interest $27,357 $14,342 $43,757 $36,740 $17,604 $65,527 $1,089
Dividends 95,927 51,541 124,329 97,050 52,369 3,286 0
Net appreciation
(depreciation) in fair
value of investments 1,482 9,093 173,790 157,967 0 652,396 0
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total investment
income (loss) 124,766 74,976 341,876 291,757 69,973 721,209 1,089
------------ ----------- ------------ ----------- ----------- ----------- ------------
Contributions:
Employer 0 0 0 0 0 0 0
Participant 115,678 55,990 136,974 137,588 46,052 198,460
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total contributions 115,678 55,990 136,974 137,588 46,052 198,460 0
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total additions 240,444 130,966 478,850 429,345 116,025 919,669 1,089
------------ ----------- ------------ ----------- ----------- ----------- ------------
Administrative expenses (966) (382) (1,754) (1,486) (900) (1,915) 0
Participant withdrawals and distributions (150,942) (6,904) (144,033) (166,356) (267,384) (248,820) 0
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total deductions (151,908) (7,286) (145,787) (167,842) (268,284) (250,735) 0
------------ ----------- ------------ ----------- ----------- ----------- ------------
Interfund transfers 1,609,593 465,294 2,129,576 1,795,350 1,330,963 3,328,260 135,060
------------ ----------- ------------ ----------- ----------- ----------- ------------
Net increase (decrease) 1,698,129 588,974 2,462,639 2,056,853 1,178,704 3,997,194 136,149
Net assets available
for Plan benefits:
Beginning of year 0 0 0 0 0 0 0
------------ ----------- ------------ ----------- ----------- ----------- ------------
End of year $1,698,129 $588,974 $2,462,639 $2,056,853 $1,178,704 $3,997,194 $136,149
============ =========== ============ =========== =========== =========== ============
GMP
Stock Loan
1997 continued Fund Fund Total
------------ ----------- ------------
Investment income (loss)
Interest $36,018 $456,542
Dividends 123,544 0 1,158,647
Net appreciation
(depreciation) in fair
value of investments (446,504) 0 1,065,645
------------ ----------- ------------
Total investment
income (loss) (286,942) 0 2,680,834
------------ ----------- ------------
Contributions:
Employer 440,313 0 440,313
Participant 81,022 0 1,576,204
------------ ----------- ------------
Total contributions 521,335 0 2,016,517
------------ ----------- ------------
Total additions 234,393 0 4,697,351
------------ ----------- ------------
Administrative expenses (10,908) 0 (60,700)
Participant withdrawals and distributions (198,181) (39,916) (2,081,422)
------------ ----------- ------------
Total deductions (209,089) (39,916) (2,142,122)
------------ ----------- ------------
Interfund transfers (2,345,999) (189,975) 0
------------ ----------- ------------
Net increase (decrease) (2,320,695) (229,891) 2,555,229
Net assets available
for Plan benefits:
Beginning of year 3,640,609 1,229,841 17,610,896
------------ ----------- ------------
End of year $1,319,914 $999,950 $20,166,125
============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
S&P
500 GMP Temporary
Index Stock Cash Asset Ultra Loan
1996 Fund Fund Fund Fund Fund Fund Total
------------ ----------- ------------ ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss)
Interest $21,460 $14,351 $111,913 $18,553 $24,414 $190,691
Dividends 0 340,037 0 360,380 223,865 0 924,282
Net appreciation
(depreciation) in fair
value of investments 623,182 (654,662) 0 99,559 198,363 0 266,442
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total investment
income (loss) 644,642 (300,274) 111,913 478,492 446,642 1,381,415
------------ ----------- ------------ ----------- ----------- ----------- ------------
Contributions:
Employer 0 447,490 0 0 0 0 447,490
Participant 364,608 185,857 143,483 335,451 497,331 0 1,526,730
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total contributions 364,608 633,347 143,483 335,451 497,331 1,974,220
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total additions 1,009,250 333,073 255,396 813,943 943,973 3,355,635
------------ ----------- ------------ ----------- ----------- ----------- ------------
Administrative expenses (9,534) (15,017) (6,583) (9,185) (11,149) 0 (51,468)
Participant withdrawals and distributions (117,085) (549,447) (283,591) (107,905) (34,949) 0 (1,092,977)
------------ ----------- ------------ ----------- ----------- ----------- ------------
Total deductions (126,619) (564,464) (290,174) (117,090) (46,098) (1,144,445)
------------ ----------- ------------ ----------- ----------- ----------- ------------
Interfund transfers 657,132 (1,135,980) 67,546 (135,796) 348,481 198,617 0
------------ ----------- ------------ ----------- ----------- ----------- ------------
Net increase (decrease) 1,539,763 (1,367,371) 32,768 561,057 1,246,356 198,617 2,211,190
Net assets available
for Plan benefits:
Beginning of year 2,213,009 5,007,980 1,878,763 2,553,541 2,715,189 1,031,224 15,399,706
------------ ----------- ------------ ----------- ----------- ----------- ------------
End of year $3,752,772 $3,640,609 $1,911,531 $3,114,598 $3,961,545 $1,229,841 $17,610,896
============ =========== ============ =========== =========== =========== ============
</TABLE>
GREEN MOUNTAIN POWER CORPORATION Schedule 1
Employee Savings and Investment Plan and Trust
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
(c)
Number (e)
of Shares (d) Current
or Units Cost Value
(b) Identity of Issue
*Green Mountain Power Corporation,
common stock 73,711 $1,456,173 $785,039
American Century:
*Intermediate Term Treasury Fund 91,020 952,679 973,917
*Vista Fund 167,783 1,974,254 1,786,892
*Value Fund 449,384 3,035,334 2,718,777
*International Discovery Fund 227,023 1,906,249 2,172,609
*Strategic Allocation Conservative Fund 140,597 742,209 773,281
*Strategic Allocation Moderate Fund 428,041 2,366,257 2,658,135
*Strategic Allocation Aggressive Fund 359,918 2,058,029 2,379,058
*Premium Capital Reserve Fund 1,468,899 1,468,899 1,468,899
Barclay's Equity Index Fund 182,313 3,727,161 5,339,934
Charles Schwab Fund 223,631 223,708 223,631
Participant loans, interest rates from
6% to 9% - 975,259 975,259
-----------------------
Total investments 20,886,211 22,255,431
=======================
Note: There were no assets held for investment which were both acquired and
disposed during the Plan year, except for securities purchased from a
broker/dealer and listed on a national securities exchange.
*Party-in-interest
<TABLE>
<CAPTION>
GREEN MOUNTAIN POWER CORPORATION Schedule 2
Employee Savings and Investment Plan and Trust
Line 27d - Schedule of Reportable Transactions
Year Ended December 31, 1998
(h)Current
Value of
(c)Purchase (d)Selling (g)Cost of Asset on (i) Net Gain
(a) Identity of Party Involved Price Price Asset Trans. Date or (Loss)
<S> <C> <C> <C> <C> <C>
American Century:
Value Fund $1,063,216 $-- $1,063,216 $-- $--
Barclay's Equity Index Fund 1,181,235 -- 1,181,235 -- --
Green Mountain Power
Corporation, common stock 1,095,875 -- 1,095,875 -- --
Green Mountain Power
Corporation, common stock 1,282,043 1,106,509 1,282,043 1,106,509 (175,534)
Note: Reportable transactions, for the purpose of this schedule, are:
(a) Any single transaction within the Plan year, with respect to any Plan asset, in excess of 5%
of the fair value of Plan assets as of the begenning of the Plan year; or
(b) Series of transactions within the Plan year with, or in conjunction with, the same person
involving property other than securities, that amount in the aggregate to more than 5% of the
fair value of Plan assets as of the beginning of the Plan year;or
(c) Series of transactions within the Plan year with respect to securities of the same issue that
amount in the aggregate to more than 5% of the fair value of Plan assets at the beginning of
the Plan year;or
(d) Any "Securities" transaction within the Plan year with or in conjunction with a person, if any
prior or subsequent securities transaction has occurred with that same person in an amount in
excess of 5% of the fair value of Plan assets at the begenning of the Plan year.
</TABLE>
Consent of Independent Auditors'
We consent to the inclusion in the Annual Report on Form 11-K under the
Securities Exchange Act of 1934 for the years ended December 31, 1998
and 1997, of Green Mountain Power Corporation Employee Savings and
Investment Plan and Trust of our report dated May 28, 1999.
KPMG Peat Marwick LLP
June 29, 1999
Burlington, Vermont
CONSENT OF INDEPENDENT AUDITOR
We consent to the incorporation by reference in the Registration
Statement on Form S-8 (File No. 33-58413) under the Securities Act of
1933 of Green Mountain Power Corporation of our report dated February
11, 1997, contained in the Annual Report on Form 11-K under the
Securities Exchange Act of 1934 for the year ended December 31, 1998,
of Green Mountain Power Corporation Employee Savings and Investment
Plan and Trust.
KITTELL, BRANAGAN & SARGENT
St. Albans, Vermont
Registration No. 167
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Retirement Board of Green Mountain Power Corporation,
which administers the Plan, has duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly
authorized.
GREEN MOUNTAIN POWER CORPORATION
EMPLOYEE SAVINGS AND INVESTMENT
PLAN AND TRUST
By: /s/Nancy Rowden Brock
Nancy Rowden Brock
Chairperson of the Retirement Board
Date: June 30, 1999
